RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  7 February 2008
	DOCKET NUMBER:  AR20070012373 


	I certify that hereinafter is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in the case of the above-named individual.


Ms. Catherine C. Mitrano

Director

Mrs. Nancy L. Amos

Analyst


The following members, a quorum, were present:


Mr. William D. Powers

Chairperson

Msr. Rose M. Lys

Member

Mr. Qawiy A. Sabree

Member

	The Board considered the following evidence:

	Exhibit A - Application for correction of military records.

	Exhibit B - Military Personnel Records (including advisory opinion, if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests that the Army repay her student loan under the Student Loan Repayment Program (SLRP) as per her enlistment contract.

2.  The applicant states her enlistment contract stated that her student loan would be repaid through the SLRP.  From May 2001 until May 2007 she made payments on her loan in order to keep the loan in good standing.  She also submitted the appropriate SLRP paperwork through her unit on five separate occasions in order to have the loan paid off.  Her Guard unit in each duty location failed to finalize and submit her paperwork each time it was submitted.  She separated on 20 May 2007, and the loan was paid off through payments she personally made to avoid defaulting on the loan before she could get any response from the Army National Guard (ARNG).  The original amount of the loan was $3,707.49; total interest paid from 2002 through 2007 was $757.79; and the total amount owed by the SLRP is $4,465.28.

3.  The applicant provides four DD Forms 2475 (DOD Educational Loan Repayment Program (LRP) Annual Application), dated 5 April 2006, 2 March 2007, 20 March 2007, and 8 June 2007, all four indicating a loan amount of $3,707.49; a DA Form 200 (Transmittal Record), dated 16 December 2006; a memorandum, dated 5 June 2006; Annex S (Student Loan Repayment Program Addendum Army National Guard of the Untied States) to her enlistment contract (also identified as National Guard Bureau Form 600-7-5-R-E); her DD Form 1966 (Record of Military Processing – Armed Forces of the United States); her military occupational specialty (MOS) orders; emails between her and the Virginia ARNG Student Loan Repayment Manager; a letter, dated 25 June 2007; a printout of her American Education Services loan servicing account details; and a letter, dated 7 August 2007, from the Virginia ARNG Student Loan Repayment Manager.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the ARNG on 21 May 2001.  Her enlistment incentives included the SLRP in the amount of $10,000.  Annex S to her enlistment contract indicates that she had two student loans in the amount of $5,326.50.  The Annex noted that she was responsible for maintaining her loan account(s) in good standing.

2.  The applicant provided a letter, dated 25 June 2007, from American Education Services that indicated a “DOD” form (presumably a DD Form 2475) was received on five separate occasions, beginning in May 2004, and processed and mailed to her unit(s) shortly after those forms were received.
3.  On 20 May 2007, the applicant was honorably discharged from the ARNG and transferred to the U. S. Army Reserve Control Group (Annual Training).

4.  The SLRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) secured after 1 October 1975.  The loan amount to be repaid is 15 percent of the original balance of the loan plus accrued interest not paid by the Department of Education, or $500.00 plus the accrued interest not paid by the Department of the Education, whichever is greater.  Payments will be made for each year of satisfactory service in the Selected Reserve.  The maximum amount of loans against which the 15 percent is computed will not exceed $10,000.  This equates to a maximum annual repayment of $1,500 plus interest.  If the amount set for repayment is less than $500.00, then $500.00 becomes the calculated amount for repayment that year. 

5.  To be eligible for the SLRP incentive, a person must contractually obligate himself or herself to serve satisfactorily, must serve in a reserve unit for a full term of the contractual agreement and must further obligate himself or herself to continue to serve in the same component and the same MOS unless excused for the convenience of the Government.  Entitlement to the SLRP will stop if the Soldier is separated from the Selected Reserve.  Each complete satisfactory year of service performed under this SLRP agreement establishes an anniversary date.  Any qualifying loan which is at least a year old may then be paid in accordance with the terms of this educational enlistment incentive.

6.  The Government will not make any payments to the Soldier or reimburse a Soldier if he or she pays off a student loan.  The Government will only pay the lending institution.

7.  Title 10, U. S. Code, section 1552, the law which provides for the Board, states that “The Secretary may pay, from applicable current appropriations, a claim for the loss of pay, allowances, compensation, emoluments, or other pecuniary benefits, or the repayment of a fine or forfeiture, if, as a result of correcting a record under this section, the amount is found to be due the claimant on account of his or another’s service in the Army, Navy, Air Force, Marine Corps or Coast Guard, as the case may be.”

DISCUSSION AND CONCLUSIONS:

1.  The applicant enlisted in the ARNG for the SLRP incentive on 21 May 2001. Annex S to her enlistment contract indicated that she had two student loans in the amount of $5,326.50; however, she is asking for repayment of only one loan (in the original amount of $3,707.49 and a total, with interest, amount of $4,465.28).
2.  The 25 June 2007 letter from American Education Services indicated that the applicant made good faith efforts to have the Army pay off her student loan in a timely manner.  For an unknown reason, her unit failed to process the paperwork. She paid off her loan as required and to keep her credit in good standing.  She was honorably discharged from the ARNG on 20 May 2007, after having faithfully carried out her part of the enlistment contract.

3.  The Government will not make any payments to the applicant or reimburse her if she paid off a student loan.  The Government will only pay the lending institution.  However, her military records may be further corrected to show her National Guard Bureau Form 600-7-5-R-E was amended to include the sentence “If a student loan is accepted by the officials processing you for enlistment as payable under the SLRP and it is later discovered that it is not payable for reasons of law or regulation, the Army Board for Correction of Military Records may pay the loan, at its sole discretion, in accordance with Title 10, U.S. Code, section 1552.”  This would allow the Board to invoke that provision and pay her the amount her lending institution would have been paid under the SLRP.

BOARD VOTE:

__wdp____  __rml___  __qas___  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to warrant a recommendation for relief.  As a result, the Board recommends that the state National Guard records and the Department of the Army records of the individual concerned be corrected, as appropriate, by amending her National Guard Bureau Form 600-7-5-R-E to include the sentence “If a student loan is accepted by the officials processing you for enlistment as payable under the SLRP and it is later discovered that it is not payable for reasons of law or regulation, the Army Board for Correction of Military Records may pay the loan, at its sole discretion, in accordance with Title 10, U.S. Code, section 1552.” 

2.  That as a result of the foregoing correction and in accordance with Title 10,   U. S. Code, section 1552, the Defense Finance and Accounting Service shall remit payment to the applicant of approximately $4,465.28, the total amount of her loan to which she would have been entitled had she not been erroneously denied such repayment.  The applicant will be required to submit the appropriate evidence (promissory notes, etc.) to the Defense Finance and Accounting Service to verify the amount due.




__William D. Powers___
          CHAIRPERSON




INDEX

CASE ID
AR20070012373
SUFFIX

RECON

DATE BOARDED
20080207
TYPE OF DISCHARGE

DATE OF DISCHARGE

DISCHARGE AUTHORITY

DISCHARGE REASON

BOARD DECISION
GRANT
REVIEW AUTHORITY
Ms. Mitrano
ISSUES         1.
112.12
2.

3.

4.

5.

6.